2007 (8) TMI 658

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..... duct also. If all the petroleum products were sought to be included in Schedule VI then, in our view, there was no need to have four items. Only one item would suffice to say all petroleum products. Therefore, we are satisfied that the impugned order of the assessing authority cannot be sustained, as LSHS and LPG are not covered by Schedule VI of the Act. W.P. allowed.
BILAL NAZKI AND ANANDA REDDY, JJ. ORDER:- The order of the court was made by BILAL NAZKI J.--All these writ petitions raise common questions of law. Hence, they have been heard together and disposed of by this common order. These three writ petitions have been filed by the same assessee. Writ Petition Nos. 19492 and 19493 of 2006 have been filed for different assessmen .....

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..... re of 1600ºC which would initiate melting. It appears from the order of the assessing authority that the Advance Ruling Committee has ruled that as per rule 20(2)(b) of the Rules, input tax credit was not allowed on fuels used for automobiles or used for captive power generation or used in power plants and had further ruled that the word "fuels" used in rule 20 of the Rules was used to mean all products which broadly answer the description of similar items under Schedule VI of the Act. Now in the light of these observations, let us see rule 20(2) of the Rules. We are concerned with sub-rules (a) to (d) and (h) of rule 20(2), which read as under: "(a) all automobiles including commercial vehicles/two wheelers/ three wh .....

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..... LPG fall under any of these sub-rules. Section 13 of the Act provides credit for input tax subject to the condition that an input credit tax shall be allowed to the dealer for the tax charged in respect of all purchases of taxable goods, made by that dealer during the tax period, if such goods are for use in the business of the VAT dealer. No input tax credit shall be allowed in respect of the tax paid on the purchase of goods specified in Schedule VI. Learned Special Standing Counsel for Commercial Taxes wants us to hold that the LSHS and LPG fall under item 2 of Schedule VI. Item 2 of Schedule VI is "petrol". Item 3 is aviation motor spirit and any other motor spirit, item 4 is aviation turbine fuel and item 5 is diesel oil. It .....

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